(If an agent misleads a potential insured as to the terms of a policy, it...

Misrepresentation occurs when an agent makes false, misleading, or incomplete statements about the terms, benefits, or conditions of an insurance policy that could influence a consumer’s decision to purchase coverage. This may involve exaggerating benefits, minimizing exclusions, or providing incorrect information. Misrepresentation is a prohibited practice under Virginia insurance law and can result in administrative penalties, license suspension, or revocation. Defamation involves false statements that harm another’s reputation and is unrelated to policy sales. Unfair discrimination refers to treating similar risks differently without actuarial justification. Coercion involves pressuring someone to buy insurance through threats or intimidation. Since misleading a potential insured directly concerns incorrect policy information, it constitutes misrepresentation.